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Sanima Life Insurance issues IPO to general Public

 A life insurance company has come up with an IPO after a long time. A lot of IPOs have been issued from hydropower and microfinance sector before. People are investing with equal enthusiasm for every IPOs and this issue will surely be attraction to all the investors. Sanima Life insurance company is issuing its IPO to general public from today.

Company Background:

Sanima Life Insurance Company Limited was incorporated under the Companies Act, 2063 on 2064/08/13. Beema Samiti assigned the operating license to the company on 2074/05/07 as per Sub-clause 3 of Clause 10 of Insurance Act, 2049 and Sub-rule 1 of Rule 8 of Insurance Regulations, 2049 to conduct the business of Life Insurance and the company started its commercial operations on 2074/08/22. Promoted by Non-Residents Nepalese (NRN), who have an investment in different sectors of Nepalese economy like Finance, Banking, Hydropower, and Tourism, etc in Nepal, Sanima Life Insurance aims to be a trusted name in the Life Insurance Sector of Nepal. Sanima Bank is the major promoter of Sanima Life Insurance Limited.


About the IPO of Sanima life insurance:

Sanima Life Insurance Company Limited issuing 6,000,000 units of ordinary shares worth Rs. 60 crores to the general public from Shrawan 20, 2078. The early closing date of this IPO issue is on Shrawan 24, 2078 and if the issue is not subscribed till Shrawan 24 then this issue can be extended up to Bhadra 02, 2078.

Out of offered 6,000,000 units; 5% of the issued capital i.e., 300,000 units have been allotted for the employees of the company and 5% of the total capital has been allotted for the mutual funds. The remaining 5,400,000 units are for the general public. Applications can be placed for a minimum of 10 units and a maximum of 30,000 units. Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance.

The paid-up capital will reach Rs. 2 Arba after the issuance of the public shares. After the IPO issue; public holding will be 30% and promoters holding will be 70%.

Credit Rating(Care Nepal):

Care Ratings Nepal (CRNL) has assigned a ‘CARE-NP BBB- (Is)’ rating to Sanima Life Insurance Limited (SLIL). Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

Key Rating Strengths:

  • Strong Promoter group including institutional promoter
  • Experienced board and management team
  • Moderate financial risk profile and improving the combined ratio
  • Moderate solvency profile
  • Good assets quality of investment book
  • Adequate geographical coverage through branches
  • Key Rating Weaknesses:

Key Rating Weakness

  • Short track record and competition from other insurance companies coupled with relatively small
  • market share in the life insurance industry
  • Concentration in Endowment policies


Since the insurance companies are made mandatory to deposit 90% or more of their capital, 40% of the total funds will be allocated in fixed deposits in commercial banks (A-class financial institutions), 15% of the funds will be allocated in fixed deposits of development banks (B-class financial institution) whereas 10% of the total fund will be deposited in Microfinance companies (D-class). This makes up 65% of funds directly into the fixed deposit. The remaining 25% is allocated to Government Bonds while 10% is allocated to investment in publicly listed companies.  

How much to apply for the IPO of Sanima Life Insurance?

If we see the recently concluded IPO’s; more than 20 lakh applicants applied for the issue and we assume that the same or even more craze prevails in Sanima Life Insurance Limited’s IPO too. Since the 10 kitta rule exists for IPO; 540,000 applicants will be lucky enough to get the 10 shares of Sanima Life insurance.

To sum up, if the same number of applicants (or more) who applied for previous IPO’s apply for this issue then there is a high probability of getting 10 units through the lucky draw. So, it is advisable to apply only 10 units (minimum) in the IPO issue of Sanima Life Insurance Company Limited.

Coming up IPOs in SEBON's pipeline.

Nyadi Hydropower Company Limited (NYADI)

Sahas Urja Limited (URJA)

Buddha Bhumi Nepal Hydropower Company Limited (BBHCL)

Samling Power Company Limited (SAMLING)

Terhathum Power Company Limited (TPCL)

Madhya Bhotekoshi Jalavidyut Company Limited (MBKHCKL)

Reliable Life Insurance Limited

Upakar Laghubitta Bittiya Sanstha Limited 

River Falls Power Limited


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